Following the Dieselgate emission scandal, Volkswagen has been keen in selling out their subsidiary Audi owned motorcycle brand Ducati. While the news was out early this month, there where numerous rumours coming up in the form of potential buyers list. The list included big names such as Harley Davidson, Benetton family from Italy (United Colors of Benetton et al) through their Edizione Holding and Indian manufacturers like Royal Enfield, Hero and Bajaj Auto Ltd. It was also reported that KTM was closing up for a deal, though the point to be noted here is that 48% stakes of total KTM are held by Bajaj. Now the latest rumours and news from International media suggests that it could be our own Indian auto maker Bajaj, leading the bid to sign a deal. But what's not sure is whether Bajaj could be the sole proprietor of Ducati, or that might be a joint venture between Bajaj and KTM.
Rajiv Bajaj on this feasible deal:
Rajiv Bajaj, MD - Bajaj Auto Ltd., who addressed his shareholders quoted, We are close to finalising a very promising alliance, it's not certain that it'll happen, but if it happens, it will open up enormous possibilities for the company.
Rajiv Bajaj also stated that they have the money always ready (cash on books), so that they could be ready for opportunities of this kind. Bajaj reportedly has around $13 billion in free cash, though the expected bid to acquire Ducati is only around $1.5 billion.
A futuristic sight:
Bajaj acquiring the legendary Ducati brand would mean everything to the Indian auto maker, since Rajiv Bajaj has always been way ahead in terms of thinking and innovation in the Indian market. One great example would be the previous purchase of stakes from KTM, with a memorandum of understanding between both the companies to share technology, production and make business. On successful acquisition they'd have Ducati and a part of KTM on their portfolio, which would put the Indian brand as a front-runner in global scenario. We could also expect Bajaj to borrow technology from Ducati in making powerful and big engines, design philosophy and more. What do you think of Bajaj acquiring the legendary Ducati brand? Let us know in the comments section below.
By: Aravind Rb